Porsche and VW merger back on the table

Though it's backwards to the way Porsche would have had it, the merger will happen

Though it's backwards to the way Porsche would have had it, the merger will happen

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Like the Ouroboros, Porsche and Volkswagen have been considering an arrangement that would have heavily indebted Porsche Automobil-owned Volkswagen purchasing Porsche AG. A tentative solution was reached earlier this month that would have seen Porsche and VW combine to put 10 brands under a single corporate structure, and while talks broke down over the weekend due to an ongoing rift between the two companies, executives now appear to have changed course.

VW originally announced on Sunday that talks about an integrated company with Porsche scheduled for Monday have been canceled. Come Tuesday, however, Ferdinand Piech, chairman of VW, and Wolfgang Porsche of Porsche expressed their intention in a joint statement, saying the two companies would push forward to achieve their goal “constructively and amicably.”

The decision came several hours after Porsche confirmed it was looking for an outside investor to help pay its debts, reports Automotive News. These debts amount to more than €9 billion ($12 billion) and were racked up last year while Porsche was increasing its stake in VW to 51%.

To help manage the debts, Porsche announced earlier this month it wanted to form an integrated company with VW so that it could gain access to the German auto giant’s cash reserves.

Details of the merger are expected to be finalized by early June.

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